Switzerland Population: 7,996,026

The Swiss Confederation was founded in 1291 as a defensive alliance among three cantons. In succeeding years, other localities joined the original three. The Swiss Confederation secured its independence from the Holy Roman Empire in 1499. A constitution of 1848, subsequently modified in 1874, replaced the confederation with a centralized federal government. Switzerland's sovereignty and neutrality have long been honored by the major European powers, and the country was not involved in either of the two world wars. The political and economic integration of Europe over the past half century, as well as Switzerland's role in many UN and international organizations, has strengthened Switzerland's ties with its neighbors. However, the country did not officially become a UN member until 2002. Switzerland remains active in many UN and international organizations but retains a strong commitment to neutrality.

note: 6 of the cantons - Appenzell Ausserrhoden, Appenzell Innerrhoden, Basel-Landschaft, Basel-Stadt, Nidwalden, Obwalden - are referred to as half cantons because they elect only one member to the Council of States and, in popular referendums where a majority of popular votes and a majority of cantonal votes are required, these six cantons only have a half vote

Independence:

1 August 1291 (founding of the Swiss Confederation)

National holiday:

Founding of the Swiss Confederation, 1 August (1291)

Constitution:

revision of Constitution of 1874 approved by the Federal Parliament 18 December 1998, adopted by referendum 18 April 1999, officially entered into force 1 January 2000

Legal system:

civil law system; judicial review of legislative acts, except for federal decrees of a general obligatory character

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President of the Swiss Confederation Ueli MAURER; Vice President Didier BURKHALTER; note - the Federal Council, which is comprised of seven federal councillors, constitutes the federal government of Switzerland; council members rotate in one-year terms as federal president (chief of state and head of government)

head of government: President of the Swiss Confederation Ueli MAURER (since 1 January 2013); Vice President Didier BURKHALTER (since 1 January 2013)

cabinet: Federal Council or Bundesrat (in German), Conseil Federal (in French), Consiglio Federale (in Italian) is elected by the Federal Assembly usually from among its members for a four-year term (For more information visit the World Leaders website )

elections: president and vice president elected by the Federal Assembly from among the members of the Federal Council for a one-year term (they may not serve consecutive terms); election last held on 5 December 2012 (next to be held in early December 2013)

election results: Ueli MAURER elected president; number of Federal Assembly votes - 148 of 202; Didier BURKHALTER elected vice president

Legislative branch:

bicameral Federal Assembly or Bundesversammlung (in German), Assemblee Federale (in French), Assemblea Federale (in Italian) consists of the Council of States or Staenderat (in German), Conseil des Etats (in French), Consiglio degli Stati (in Italian) (46 seats; membership consists of 2 representatives from each canton and 1 from each half canton; members serve four-year terms) and the National Council or Nationalrat (in German), Conseil National (in French), Consiglio Nazionale (in Italian) (200 seats; members elected by popular vote on the basis of proportional representation serve four-year terms)

elections: Council of States - last held in most cantons on 23 October 2011 (each canton determines when the next election will be held); National Council - last held on 23 October 2011 (next to be held in October 2015)

highest court(s): Federal Supreme Court (consists of 38 judges and 31 substitutes and organized into 5 sections) judge selection and term of office: judges elected by the Federal Assembly for 6-year terms; note - judges are affiliated with political parties and are elected according to linguistic and regional criteria in approximate proportion to the level of party representation in the Federal Assembly

note: unofficially adopted 1961, official adoption 1981; the anthem has been popular in a number of Swiss cantons since its composition (in German) in 1841; translated into the other three official languages of the country (French, Italian, and Romansch), it is official in each of those languages

Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland's economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. Its economic and political stability, transparent legal system, exceptional infrastructure, efficient capital markets, and low corporate tax rates also make Switzerland one of the world's most competitive economies. The Swiss have brought their economic practices largely into conformity with the EU's to enhance their international competitiveness, but some trade protectionism remains, particularly for its small agricultural sector. The fate of the Swiss economy is tightly linked to that of its neighbors in the euro zone, which purchases half of all Swiss exports. The global financial crisis of 2008 and resulting economic downturn in 2009 stalled export demand and put Switzerland in a recession. The Swiss National Bank (SNB) during this period effectively implemented a zero-interest rate policy to boost the economy as well as prevent appreciation of the franc, and Switzerland's economy recovered in 2010 with 3.0% growth. The sovereign debt crises currently unfolding in neighboring euro-zone countries pose a significant risk to Switzerland's financial stability and are driving up demand for the Swiss franc by investors seeking a safe-haven currency. The independent SNB has upheld its zero-interest rate policy and conducted major market interventions to prevent further appreciation of the Swiss franc, but parliamentarians have urged it to do more to weaken the currency. The franc's strength has made Swiss exports less competitive and weakened the country's growth outlook; GDP growth fell to 1.9% in 2011 and 0.8% in 2012. Switzerland has also come under increasing pressure from individual neighboring countries, the EU, the US, and international institutions to reform its banking secrecy laws. Consequently, the government agreed to conform to OECD regulations on administrative assistance in tax matters, including tax evasion. The government has renegotiated its double taxation agreements with numerous countries, including the US, to incorporate the OECD standard, and is considering the possibility of imposing taxes on bank deposits held by foreigners. These steps will have a lasting impact on Switzerland's long history of bank secrecy.

note: general government gross debt; gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future; includes debt liabilities in the form of SDRs, currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable; all liabilities in the GFSM 2001 system are debt, except for equity and investment fund shares and financial derivatives and employee stock options

1,292 km (there are 1,227 km of waterways on lakes and rivers for public transport and another 65 km on the Rhine River between Basel-Rheinfelden and Schaffhausen-Bodensee used for the transport of commercial goods) (2010)

19-26 years of age for male compulsory military service; 18 years of age for voluntary male and female military service; every Swiss male has to serve at least 260 days in the armed forces; conscripts receive 18 weeks of mandatory training, followed by seven 3-week intermittent recalls for training during the next 10 years (2012)

a major international financial center vulnerable to the layering and integration stages of money laundering; despite significant legislation and reporting requirements, secrecy rules persist and nonresidents are permitted to conduct business through offshore entities and various intermediaries; transit country for and consumer of South American cocaine, Southwest Asian heroin, and Western European synthetics; domestic cannabis cultivation and limited ecstasy production